An uneasy peace descended on the normally warring political parties in Coventry's Council House yesterday.

The council's annual meeting rubber-stamped decisions made behind closed doors by the Labour and Conservative groups after the May 1 elections, in which Labour lost overall control for the first time in 24 years.

The agreement ensures Labour will continue to make key decisions but the Tories have a strengthened position.

Labour councillors will sit on the ten-member cabinet, while Tory councillors will chair the five scrutiny boards and the scrutiny co-ordination committee.

Scrutiny boards examine decisions made by the council, giving the Tories the chance to pick over policies and possibly embarrass the Labour leadership.

Cllr John Mutton, leader of the Labour group, was named new leader of the council, and Cllr George Duggins named deputy.

In a stormy opening to yesterday's meeting, it became clear it will be no cosy love-in between the two parties.

Conservative Anthony O'Neill told the meeting the Tories would never have elected Cllr John Mutton as leader, but in the interests of the authority they would not oppose his nomination.

The Tories had reached an agreement with Labour, he said, so the council could work effectively to improve performance. "We don't want to obstruct, we want to enable."

He added: "I say to the Labour group thank you. The recent leadership of this council has taken you to a position where for the first time in 24 years you have lost control. We are now standing at the door. We will not be knocking the door, we are going to kick the door down and sweep you away."

In a statement issued after the meeting, Cllr John Mutton said: "It is a privilege to be council leader and I am looking forward to the challenge. It's crucial that all politicians work effectively together. What matters is that we deliver quality services that the community expect and this will be the focus for the city council in the months and weeks ahead."

Socialist councillor Dave Nellist said after the meeting the new power balance would give the smaller parties more clout - they could swing votes over which the Tories and Labour were spilt.